Sage Software Announces Agreement With CompuPay to Provide Outsourced Payroll Services to Sage Software Customers

IRVINE, CA--(Marketwire - August 28, 2008) - Sage Software, Inc., the North American business of The Sage Group plc, announced today that it has entered into an agreement with CompuPay, Inc., one of the market-leading providers of outsourced payroll services, to provide co-branded payroll services for Sage Software customers, including those using Peachtree Managed Payroll. The agreement enables Sage Software to deliver improved services for its payroll services customers, and allows the Employer Solutions business to re-focus on its core strength in delivering HRMS software for small and mid-sized businesses (SMBs) in North America.

"Outsourced payroll and related services are important business options for many small and mid-sized businesses," said Karl Grass, senior vice president and general manager of Sage Software's Employer Solutions business. "The best way for us to deliver outsourced payroll today to our existing payroll clients, and for future Sage clients, is to align ourselves with a company like CompuPay, a recognized leader in the industry. At the same time, this agreement enables us to focus our investments on human resource management systems for small and mid-sized businesses, which are the strategic core of our Employer Solutions business."

"We are excited about this new strategic agreement with Sage Software, and its Sage Abra HRMS software and family of other business management products," stated Charlie Lathrop, chairman, CEO and president of CompuPay, Inc. "We look forward to bringing an upgraded suite of payroll and related services to Sage Software's customers."

Through this transaction, CompuPay will assume the day-to-day operations of Sage Software's online payroll services business, located in St. Petersburg, Fla., which includes Peachtree Managed Payroll as well as payroll services for Sage Abra, Sage Accpac ERP, Sage BusinessWorks Accounting, Sage MAS 90 ERP and Sage MAS 200 ERP. CompuPay will also make its broader suite of payroll and after-payroll solutions, such as 401(k) retirement plans, Section 125 plans, Workers Compensation Insurance, and Employee Benefits, available to Sage Software customers. CompuPay will retain a number of Sage payroll employees to continue to service these customers. There will be no interruption of services to customers during the transition.

Sage Software develops Sage Abra HRMS, a leading HR/payroll software for SMBs in North America, and continues to build on that leadership with innovative new tools for employers. In the past year, the company launched Sage Compliance Trainer, an online HR compliance training solution for employers; Sage Payroll PayCards, a new option that enables companies to pay their employees with pre-loaded paycards that operate like cash; new options to run Sage Abra HRMS either as a turn-key hardware/software solution or in a hosted environment; and an SQL-based payroll option.

About CompuPay, Inc.

CompuPay, Inc. was founded in 1980 and today is the fourth largest payroll company in the U.S. Its growing network of local offices processes payroll for tens of thousands of companies ranging in size from 1 to over 10,000 employees in all 50 states. The company offers payroll and employer-related services such as workers' compensation insurance, employee benefits, retirement plans and Section 125 and 132 plans to clients seeking highly flexible, innovative solutions to meet their growing business needs. For more information, visit www.compupay.com.

About Sage Software

Sage Software supports the needs, challenges and dreams of nearly 2.9 million small and medium-sized business customers in North America through easy-to-use, scalable and customizable software and services. Our products support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage Software is a subsidiary of The Sage Group plc, a leading global supplier of business management software and services to small and medium-sized businesses. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage Group now has 5.7 million customers and employs over 14,800 people worldwide. For more information, please visit the web site at www.sagesoftware.com or call (866) 308-2378.

Contact Information: Press Contacts: John Schoutsen Sage Software 905-267-2873 john.schoutsen@sage.com Cynthia Sutton Sage Software 703 793 2700 ext. 3032 cynthia.sutton@sage.com Kathey Palmer CompuPay 615-591-3756 katheypalmer@compupay.com